W.P. Carey Inc. announced today that it has entered into an approximately €58.6m sale-leaseback transaction for a portfolio of 10 automotive retail and services site in the Netherlands with Stern Groep N.V. (Stern Group), a Dutch listed automotive group.
Stern Group is the Netherlands’ leading automotive retailer, offering a diverse range of 22 premium and volume car brands as well as providing automotive financing and maintenance and repair services.
The 10 sites are strategically located in and around Amsterdam, Utrecht and Eindhoven – three of the Netherlands’ largest cities. Representing approximately 10% of Stern’s locations, the facilities generated about one quarter of Stern’s fiscal 2014 revenues. The portfolio is triple-net leased for a 17-year period and includes full Dutch CPI annual rent escalations.
Christopher A. Mertlitz, vice president at W. P. Carey, commented: "We are pleased to expand our portfolio in the Netherlands through this acquisition, which contributes to our growing presence in Western Europe and adds a solid, long-term net leased retail asset to our holdings. This transaction is a further example of our focus on acquiring high-performing, strategically-located assets from market leading tenants to create long-term value for our portfolio."
Henk van der Kwast, CEO at Stern Group, commented: “A long-term sale-leaseback was the logical decision to free up illiquid capital tied up in our real estate holdings to fund strategic growth initiatives. W. P. Carey's ability to structure this bespoke transaction allowed us to advance strategic components of our business plan while partnering with an established investor. W. P. Carey’s track record and experience, particularly in the Netherlands, was invaluable and made them the ideal partner for us.”
